Porter Airlines September load factor

[midwingcrisis]

Porter Airlines September load factor improves 8.2 points
Revenue Passenger Miles up 79.9%

TORONTO, Oct 5 /CNW/ - Porter Airlines released traffic statistics for September 2010, indicating a year-over-year load factor improvement of 8.2 points to 55.8% from 47.6%.

The September load factor is based on 96.4 million ASMs (Available Seat Miles) and 53.8 million RPMs. ASMs grew 53.5% per cent from 62.8 million and RPMs increased 79.9% from 29.9 million year-over-year.

The airline also flew approximately 56,000 more passengers in September compared to last year.

"Porter continues posting traffic figures with excellent gains across the board," said Robert Deluce, president and CEO of Porter Airlines. "We are especially pleased with numbers from recent months and anticipate a similarly strong conclusion to the calendar year."

Porter had an industry-leading break-even load factor of 49% in 2009.

[aroundthewing]

Porter had an industry-leading break-even load factor of 49% in 2009.

Had? What is it now?

[ChallengerDan]

midwingcrisis wrote:
Porter had an industry-leading break-even load factor of 49% in 2009.


Had? What is it now?

My guess would be it is higher, considering they have been having a 20% off seat sale for the last ....what..... 6 months now?

[Disco Stu]

JetsGo is an awful good reminder that load factor means f* all when it comes to profit. It's all about yield.

[Troubleshot]

I guess the glass is half empty with most folks here....good job Porter!! The comparison with Jetso is uncalled for.

[bmc]

JetsGo is an awful good reminder that load factor means f* all when it comes to profit. It's all about yield.

It's both. Yield with no passengers isn't good.

Curious to know what the breakeven load factor is.

[CanterburyTail]

midwingcrisis wrote:
Porter had an industry-leading break-even load factor of 49% in 2009.


Had? What is it now?

My guess would be it is higher, considering they have been having a 20% off seat sale for the last ....what..... 6 months now?

My guess is the 20% off sale isn't because they're having difficulty, but to get more passengers to increase brand loyalty before the island airport opens up next year.

[bmc]

The island is a great airport and a not so great airport. Not unlike Chicago Midway or even Abbotsford, insofar as if you have a cancellation, there are no other choices to get you where you want to go.

Keeping attractive fares in the market place does not mean there are lots of seats made available on all flights. It's all inventory controlled, responding to demand. It's great advertising of a) an airline service from the island, and b) they offer cheap airfares.

Cheap fares are not a sign of financial troubles.

We're into low season for leisure traffic. The loads are soft, but the yield is probably strong with business traffic, which is a key driver for the island for Porter. (btw...I don't work for them). With a 49% load factor, it's always nice to see some departures going out with more seats filled. Not everybody lives near the island. Not everybody wants to go where they fly. And not everybody wants to fly on a turboprop. (I had to do a sales pitch to the guy in front of me, one day in Vienna, telling him how fast and safe the Q400 was. He saw props and got nervous.)

The upside to the island is the captive market. The downside to the island is the captive market insofar as the demand is suspect for the reasons I list.

AC has to absolutely hate island operations. It siphons traffic away from Pearson. They feel the pinch and have to react. Launching an operation out of the island means more staff and more expenses to try to retain lost traffic and be a competitive service. Starting up on the island isn't going to grow the market. It's going to grow cost. Ac will feel it and Porter will feel it.

It will get down to who likes who more. Seeing that frequent flyer programs are the leading criteria for carrier selection for business traffic, AC having the larger network and affiliation with Star Alliance, stands the greater chance of getting more traffic.

I could be wrong. I have been before. Talk to my wife. She'll confirm it.

[station60]

Porter Airlines September load factor improves 8.2 points
Revenue Passenger Miles up 79.9%

...and we still can't make a profit (sorry, too easy!)

[Troubleshot]

Porter Airlines September load factor improves 8.2 points
Revenue Passenger Miles up 79.9%

...and we still can't make a profit (sorry, too easy!)

Well the losses you are referring to were when the passengers loads weren't as good as they are now, the financial numbers provided in the IPO disclosure were in previous years. So perhaps you should educate yourself before posting (sorry, too easy!)

[aviator2010]

Well the losses you are referring to were when the passengers loads weren't as good as they are now, the financial numbers provided in the IPO disclosure were in previous years. So perhaps you should educate yourself before posting (sorry, too easy!)

sacraficing RASM for load does not equal profit, till you show a profit or at least a B/E you show a loss. Educate me on how I'm wrong

[bmc]

Porter Airlines September load factor improves 8.2 points
Revenue Passenger Miles up 79.9%

...and we still can't make a profit (sorry, too easy!)

Well the losses you are referring to were when the passengers loads weren't as good as they are now, the financial numbers provided in the IPO disclosure were in previous years. So perhaps you should educate yourself before posting (sorry, too easy!)

Out of curiosity, has the flying changed year over year? Has Porter added new destinations, aircraft or frequencies in the past twelve months?
If they have, that would definitely increase your RPSM's and distort the mislead on the increased numbers.

[Troubleshot]

Well the losses you are referring to were when the passengers loads weren't as good as they are now, the financial numbers provided in the IPO disclosure were in previous years. So perhaps you should educate yourself before posting (sorry, too easy!)

sacraficing RASM for load does not equal profit, till you show a profit or at least a B/E you show a loss. Educate me on how I'm wrong

Aviator 2010, After reading your posts on this site I will certainly not waste by breath...on any subject...

BMC, I am not sure on the increases or deceases. I will let the Porter folk answer that one, but I will say the company is trending in the right direction and that is obvious.

[airliner]

If you have not noticed there is always a 20% off its good marketing, The real price is with the 20% and if you pay otherwise your a sucker.

If you haven't been to the island recently you would see that we are welcoming new carriers. With all the raccoon propaganda and brand labeling other operators are just free advertising for porter.

[bmc]

If you haven't been to the island recently you would see that we are welcoming new carriers. With all the raccoon propaganda and brand labeling other operators are just free advertising for porter.

I haven't been to Toronto in 15 years.

You're absolutely right about free advertising for Porter. The ripple effect of other airlines advertising the Island as the growing airport possibility will rub off on Porter.

[ChallengerDan]

Although it is true that seat sales are not a direct indiaction of trouble for a carrier, it is a strategy to boost load factor, which will allow healthy yield management. It is hard to generate solid revenue when airplanes are flying half full.
I just noticed that AirCanada has 20%off on the destinations that Porter also serves.

If you have not noticed there is always a 20% off its good marketing, The real price is with the 20% and if you pay otherwise your a sucker.

Yep, I know a thing or two about marketing.

But.... can't remember Porter doing that sort of seat sales before 2010. I Remember checking prices in late 2008 or early 2009, and for some reason I remember them charging a little bit more than Aircanada back then. I figured they could justify it with the better service and superior amenities.... seems the tables have turned.....

a flight for tomorrow on Porter yul-ytz is 194, and AC has it at 204$..... both have a code for an extra 20% off.



I wish all the best to the Porter folks. But it just seems to me they bit more than they can chew. Canada is too big a country to serve only with Q4, me thinks.

[Troubleshot]

Although it is true that seat sales are not a direct indiaction of trouble for a carrier, it is a strategy to boost load factor, which will allow healthy yield management. It is hard to generate solid revenue when airplanes are flying half full.
I just noticed that AirCanada has 20%off on the destinations that Porter also serves.

If you have not noticed there is always a 20% off its good marketing, The real price is with the 20% and if you pay otherwise your a sucker.

Yep, I know a thing or two about marketing.

But.... can't remember Porter doing that sort of seat sales before 2010. I Remember checking prices in late 2008 or early 2009, and for some reason I remember them charging a little bit more than Aircanada back then. I figured they could justify it with the better service and superior amenities.... seems the tables have turned.....

a flight for tomorrow on Porter yul-ytz is 194, and AC has it at 204$..... both have a code for an extra 20% off.



I wish all the best to the Porter folks. But it just seems to me they bit more than they can chew. Canada is too big a country to serve only with Q4, me thinks.

Porter doesn't serve all of Canada last time I checked.

[quickflight]

ChallengerDan Wrote: But.... can't remember Porter doing that sort of seat sales before 2010. I Remember checking prices in late 2008 or early 2009, and for some reason I remember them charging a little bit more than Aircanada back then. I figured they could justify it with the better service and superior amenities.... seems the tables have turned.....

I was a VIPorter member back then and flew Porter a lot, I always waited for the 20% off sales... They have been doing them for a long time. They are usually only for a few days.

[ChallengerDan]

Porter doesn't serve all of Canada last time I checked.

Well, ThunderBay to St-John's New Foundland is quite a formidable distance, if you ask me.

[BTD]

Well, ThunderBay to St-John's New Foundland is quite a formidable distance, if you ask me.

[station60]

Porter Airlines September load factor improves 8.2 points
Revenue Passenger Miles up 79.9%

...and we still can't make a profit (sorry, too easy!)

Well the losses you are referring to were when the passengers loads weren't as good as they are now, the financial numbers provided in the IPO disclosure were in previous years. So perhaps you should educate yourself before posting (sorry, too easy!)

You're right, Porter has turned a huge profit in just over one year, my mistake. I'm all-in on Porter.

[Troubleshot]

You're right, Porter has turned a huge profit in just over one year, my mistake. I'm all-in on Porter

Hey man, don't get all sooky cause I pointed out an error by you. If Porter doesn't make a profit AT YEARS END, you were right. Only at years end can you say a company has turn a profit or not. I am putting my money on they will.